Planit:Malaysian Sale of a Business Exercise Answer Key

From Planipedia

This case study is specific to financial planning in Malaysia, so has fixed values rather than indices by country. For a similar case study applicable to other case studies, please see Planit:Canadian Sale of a Business Exercise Answer Key, Planit:UK Sale of a Business Exercise Answer Key, or Planit:Singapore Sale of a Business Exercise Answer Key.

Question One:

45-year old Kathy Black owns a small Spa with an ACB of $100,000 that she plans to sell when she retires at age 60. The business is currently worth $460,000. She expects the business will grow at a rate of 5.0% every year. What would you put into the following data fields on the detailed Pensions screen?

To Year:____

Percent Taxable:____%

% Amount on Death:____%

Model As:____

Answer:

To Year: 15 years from the current year (year of Kathy’s retirement)

Percent Taxable: 5% (When she retires, Kathy will have owned the business for at least 15 years)

Amount on Death: 0%

Model As: Defer with Retirement (the entire goal would be pushed back until she retires, not just the start year).